google father the alphabet (Google) reported first-quarter earnings and revenue that beat estimates, including one-off expenses associated with cost cutting and increased investment income. GOOGL stock rose on Wednesday as the tech giant expected to increase capital spending in 2023 amid investments in artificial intelligence.
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After the market closed on Tuesday, Google’s earnings were $1.17 per share, down 5% from the same period a year earlier. Google recorded $2.6 billion in one-time fees. The tech giant reports its earnings according to Generally Accepted Accounting Principles, also known as GAAP.
Moreover, total revenue increased by 3% to $69.79 billion.
Analysts had expected Google earnings of $1.08 per share on revenue of $68.9 billion. A year ago, Google reported earnings of $1.23 per share on revenue of $68 billion.
GOOGL stock: higher capital spending
Meanwhile, advertising revenue was roughly flat at $54.55 billion versus estimates of $53.8 billion.
“While Internet search has exceeded expectations and the cloud has been good enough, Google management has covered up a bear issue of increasing AI computing intensity as it modestly revised its capital spending forecast for 2023,” Brad Erickson, analyst at RBC Capital, said in a report. .
GOOGL stock rose 1.4% to 105.27 in morning stock market trading today.
Google’s board approved an additional $70 billion in stock buybacks. In the first quarter, the company bought back $14.6 billion of its own stock.
YouTube is under pressure from TikTok
Meanwhile, YouTube ad revenue fell 2% to $6.69 billion, but it outperformed views amid lowered expectations. Analysts estimated YouTube’s ad revenue at $6.6 billion. The growth of TikTok has put pressure on YouTube.
Google said cloud computing revenue rose 28% to $7.45 billion, just short of estimates of $7.46 billion. Google’s cloud business posted 44% revenue growth in the year-ago period.
Big Tech stock advanced 19% in 2023 amid volatility in the Nasdaq.
According to. GOOGL holds a relative strength rating of 59 out of the best possible 99 IBD stock check. Heading to Google’s earnings report, the shares traded 1% below their entry point.
Follow Reinhardt Krause on Twitter @employee For updates on 5G wireless networks, artificial intelligence, cybersecurity, and cloud computing.
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